Please answer the following question with full detail and show your work

Short Answer Question (5 points) Sheila Thompson, a foreign exchange trader at JP Morgan Chase, can invest $1M, or the foreign currency equivalent of the bank's short-term funds, in an uncovered interest arbitrage with the United Kingdom. Arbitrage funds available to invest $1M (or the equivalent in pounds) Spot rate ($/E) 1.4788 90-day forward exchange rate ($/E) 1.5493 Expected 90-day spot exchange rate ($/) 1.5898 Annualized U.K. pound 90-day interest rate 23% What would you expect the 90-day interest rate in the U.S. to be in order to achieve true covered interest rate parity using the CIRP (i.e., the investor is indifferent between investing in London or New York)? Hint: use the approximate formula. i B